where to park emergency funds

wigardenerwannabeOctober 20, 2010

Just hoping for some input on where (ie. types of investments) to put 'emergency funds' as you gradually add to them. I'm talking about in the $10,000 to $22,000 range, but still have reasonable access to it in the event of an emergency need.

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The Money Market is a safe investment that gives you immediate access, but an interest rate that runs less than inflation. Otherwise, I'd recommend you find a Certified Financial Advisor to look at your financial situation and help you put together an investment plan to give you 'enough' liquidity, but also some potential for earnings.

    Bookmark   October 20, 2010 at 11:46PM
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Altho the price can fluctuate a little, look at Ginnie Mae funds at Vanguard or Fidelity. Morningstar is the standard for mutual fund ratings. You'll get a better rate of return than with money market funds even with a very slight price fluctuation.

I'll also recommend Bob Brinker's radio program and website. Lots of great information.


Here is a link that might be useful: Morningstar ratings

    Bookmark   October 21, 2010 at 12:42AM
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Hi wigardnerwannabe,

I would *NOT*& recommend putting emergency reserves in *ANY* non-insured account. (period!)

There are good high-yield checking accounts on offer, fully FDIC insured. Yield is in the high 3%s to low 4%s.

Google 'high yield checking' and choose among several specialty websites that do nothing by gather these kinds of accounts to shop amongst.

Dave Donhoff
Leverage Planner

    Bookmark   October 21, 2010 at 2:35PM
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For emergency funds, they should be:

A) 100% liquid
B) 100% Safe

Obviously, a higher interest rate is good, but not at the expense of A or B.

    Bookmark   October 22, 2010 at 9:31AM
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'Ready' funds? Six months to a year's living expenses. Likely more than $20K. So...where to put $50K? (In a *checking account*? Really? Those I've seen advertised have some strage requirements. I don't use a debit card or need to access pay-per-service cash machines.)

    Bookmark   October 22, 2010 at 12:36PM
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